Sngapore economy:the way ahead

Singapore consistently ranks high among 'most attractive countries for international business' and has achieved a per capita GDP level comparable to levels of developed western nations. Though the economy was affected by Asian financial crisis, the country's sound macroeconomic fundamentals, as well as the government's efforts to cut business costs, resulted in economic rebound in 1999 and 2000. However, from 2001 to 2003, the economy was hard hit again by the global recession as well as by the slump in the technology sector. The outbreak of SARS in 2003 further slammed the economy by substantially reducing tourism and consumer spending. Since mid-2003, Singapore's economy has recovered rapidly due to a favorable external environment, supportive macroeconomic policies, and continued structural reforms. While near-term prospects are favorable, sustaining robust growth over the medium term will require the country to meet the rising challenges from low-cost regional economies. Against this context, this article attempts to analyze the growth prospects of Singapore economy in the present era of globalization, competition and multilateral trade agreements. Section one attempt to analyze competition from India China and Malaysia and the recent strategies adopted by Singapore to address the challenge. Section two examines the current economic overview of Singapore. Section three evaluates the priority areas of Singapore –investment in education, R&D, addressing ageing problem, rowing high trust services [legal services, financial services, maritime and aviation], IT Connectivity and energy hub, increase in international trade and branding Singapore as a global city.